NMCE rubber futures changed a little on Tuesday. While most of the world rubber indices turned positive as oil gained. Prices in Tokyo rose as much as 3.4 percent, tracking crude, which gained to an eight-month high as the dollar declined. Synthetic rubber is made from naphtha, which is distilled from petroleum.
Natural rubber production in India, the world’s fourth biggest producer, declined 10 per cent last month after dry weather lowered yield in the main growing region, the state-owned Rubber Board said. Exports slumped to 750 tonne in the first two months of the year started April 1 from 5,000 tonne a year ago. Stockpiles rose to 178,000 tonne at the end of May, compared with 150,000 tonne a year earlier. India produced 855,000 tonne last year, up from 825,345 tonne a year ago and consumed 866,000 tonne, according to the board.
Global rubber consumption is expected to fall 7 percent in 2009 to 20.8 million tonnes, compared with an earlier forecast of an 8 percent fall, according to the secretary general of the International Rubber Study Group on Tuesday. The group forecast that world rubber consumption will grow 2.7 percent in 2010 to 21.4 million tones, compared with a 3 to 4 percent growth forecast he made on March 24.
NMCE rubber moved in the range of Rs.98.15-97.20 last traded at Rs.97.48 (97.48). Open interest decreased by 2 to 2453. Rubber stocks at NMCE accredited warehouses decreased by 10 to 188 Mt.
INTRADAY OUTLOOK
NMCE Rubber (July) Bullish above 97.89, next levels are 98.27, and 99.00. Bearish below 97.21, next levels are 96.80 and 95.50.
TECHNICALS –NMCE-(INTRADAY-CALLS)
Rubber (July) Bullish above 97.89, Bearish below 97.21
Courtesy: JRG Wealth Management
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